Two out of my four credit cards are store credit cards, one is close to a year old and another is four years old. Total credit limit is 12,750 with 2,750 of that being store credit cards.
Should I keep them or close them? One is Best Buy (2K) and Target ($750). I have a balance on both but plan on paying them off very soon. TIA
Store credit cards, close or keep?
byu/Sufficient_Potato_70 inCreditCards
Posted by Sufficient_Potato_70
2 Comments
Target has a debit card that does the exact same thing that its credit card does (5% discount on Target purchases) but without affecting your credit profile at all. Works by withdrawing directly from your checking account. So the credit card is largely pointless and can 100% be closed
Best Buy store card doesn’t have a debit card equivalent like that but it’s also not that compelling a card anyways. You need to turn on points banking to not be spammed with $5 certificates, and points can only be redeemed for certificates that expire and cannot be used towards your credit card statement. Only good thing about it is the 0% APR deals. But depending on how often you’re making large PC/electronics purchases, it can be better to just get a new credit card and use its sign-up bonus + 0% intro APR when you have a large upcoming Best Buy expense. Fine to close too
I closed my Target CC. Their customer service is atrocious . And stopped shopping at Target almost 2 years . Store cards are backed by terrible banks .